| Source Approval Information Booklet | Last Updated: June 10, 2011 |
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Source Approval Information Booklet
Competition Management Office
U. S. Army TACOM LCMC
Sources Sought/Market
Surveys Contracting Opportunities
The
U.S. Army TACOM Life Cycle Management Command (LCMC) buys a huge array of spare
parts to support our combat and tactical vehicle fleets. Most of these parts
have complete detailed technical data packages (TDP) that allow competitive
procurement from any competent source. Procuring spares through full and open
competition procurement actions is the preferred method of the Competition in
Contracting Act of 1984 (CICA). However, TACOM LCMC also buys many parts for
which little or no technical data is available to support procurement actions.
The procurement of these parts is restricted only to “approved" sources that have demonstrated their ability to
produce the parts. For restricted parts,
CICA requires buying activities like TACOM LCMC to seek new sources and to give
those interested sources opportunities to demonstrate their capabilities to
produce the parts. At TACOM LCMC-Warren, the implementation of this CICA
requirement is called the Source Approval Program.
The
Source Approval Program provides ways for suppliers to compete for business on
sole source or restricted spare parts. To successfully compete in the Source
Approval Program, the onus is on the "offeror" of the restricted part to demonstrate that their part is equal to or better
than the part TACOM LCMC is currently procuring. Generally, offerors offering
restricted parts for demonstration occur in two phases; the Source Approval
Request (SAR) package and the qualification test phase. During the SAR phase,
offerors must complete and submit a SAR Package to the Competition Management
Office for review and approval. The
Competition Management Office works with the appropriate engineer and program manager
to have submitted SAR Package reviewed and evaluated. The review process
normally takes 30 to 60 days before a decision is made. If an approval decision is given during the
SAR phase, the offeror is then given authorization to move into the qualification
and testing phase. The qualification and testing phase takes at least a year or
two before approval and eligibility status is granted for bidding on future
procurements. Upon receipt of approval
and eligibility status, the offeror can legally compete against other approved
sources to supply parts for government requirements. It is imperative that
offerors are aware that becoming an approved source only grants them an
opportunity to compete; it does not guarantee them future contract awards.
Source
approval is not easy. It requires the commitment of the offeror to produce the
SAR and in most cases, fund the qualification and testing requirements. It also
requires the offeror to remain actively involved in the SAR Process through
inquiries and follow-up, timely submission of supplemental data, clarifications
to questions asked, and revised documents as requested by TACOM LCMC’s
engineering staff. Similarly, TACOM LCMC
is responsible and obligated to providing offerors a prompt and objective
evaluation of their SARs qualification and testing results. Moreover, TACOM LCMC is also obligated to
provide offerors the opportunity to rework or retest various qualification and
testing components when feasible. The success of any Source Approval effort is
dependent on open dialogue and an honest collaborative partnership among all
parties.
The
Competition Management Office (CMO) is the manger of the Source Approval
Program and is responsible for receiving and initially reviewing all SARs
before forwarding them to the appropriate engineering department for final
evaluation and approval. If other
functional departments, such as Quality Assurance or Maintenance need to be
involved in the SAR approval process, the CMO will ensure their participation
in the process. On the other hand, if the process comes to a halt for any
reason or requires expediting, as the offeror’s advocate, the CMO works to get
the process back on track.
The
Source Approval program is the capstone of the competition enhancement programs
administered by the CMO. Source Approval
serves the business community by providing an avenue for manufacturers and
suppliers to tap a market that has little competition. Source Approval serves
TACOM LCMC by introducing price competition into the procurement process and
generating huge saving, reduce delivery schedules and producing better quality
products for the Soldiers and the army. Overall, it creates a “win-win” program for all parties.
The
Source Approval Program bears a very close resemblance to the Qualified Products List (QPL) or Qualified Manufacturers
List (QML) programs but they are in fact, distinctly different! The QPL and QML Programs are for items with
identified specific qualifications and quality requirements for which the US
Government already has a developed written qualification test plan. Except for the need to control some critical
need through the manufacturing process, these items would be completely
competitive build-to-print items from available Level III technical data
packages. However, items in the Source Approval program do not have complete
technical data packages and also have some crucial manufacturing or quality
details missing that prevents them from being fully competitive. In addition,
in most cases, the US Government has not developed a qualification test plan
for these items. Therefore, the
technical knowledge required to manufacture and test these parts rests with
current producer(s). The QPL and
QML Programs are administered by the TACOM Research, Development &
Engineering Center (TARDEC). For
information on TARDEC and its available programs see Appendix A.
Frequently,
the CMO receives information packages for “new items” or “new technology” that may
have military application. Although these submittals are of interest to TACOM,
they are not Source Approval candidates and are considered unsolicited
proposals. All unsolicited proposals should be forwarded to the TARDEC's
How to
Identify a Source Approval Candidate
As
previously mentioned the Source Approval process has two phases; the SAR
evaluation phase and the qualification and testing phase. Prior to entering
into Phase I, offerors must identify good SAR candidates to pursue. There are a variety of ways which an offerors
can find SAR candidates, but the most common methods include reviewing
solicitations for bid, reviewing the Competition
Advocate's Shopping List (CASL)
, Advance Procurement
Planning List (APPL) and Market Surveys. Below is a brief description
of each product.
Solicitations for Bid are the buying agencies normal
announcements of intention to buy items. The solicitations for these items
appear in the Commerce Business Daily newspapers, on TACOM LCMC’s Acquisition
Center PROCNET site, and in the FedBizOps. All of these products are excellent
sources for identifying potential Source Approval candidates. Items identified using any of these methods,
normally will not be approved and finalized in time to support an open and
on-the-street buy; however, offerors are encouraged to submit their SARs in
support of future follow-on acquisition opportunities.
CASL is a list of non-competitive spare parts with
future acquisition potential. It is the
best list of Source Approval candidates TACOM LCMC has to offer. Its intention
is to provide industry a timely identification of the non-competitive spares the US Government
anticipates procuring in the current fiscal year and next two budget
years. The timely identification of
spares provides industry an opportunity to align and structure its capital
resources in support of the SAR process and to create a position for them to
bid on future acquisition requirements. CASL Listings are published with the National Stock Numbers (NSN),
Manufacturer Part Numbers (MPN), Weapons System Codes (WSC), Unit Prices, and
projected annual procurement requirements.
APPL is a companion list that is identical to the
CASL in format and information content; however, it identifies spare parts that
TACOM LCMC-Warren is planning to procure competitively. For the most part, the
APPL contains competitive items that are not Source Approval candidates, but
some spares that are less than 100 percent competitive may appear on its
list. Items which are less than 100
percent competitive may also be good candidates for the SAR Program. Therefore,
reviewing both the CASL and APPL Listings provides the best comprehensive
forecast of TACOM LCMC -
Market Surveys and Sources Sought Notices are generated and
synopsized in the Commerce Business Daily or FedBizOps when non-competitive
items do not appear on the CASL or APPL Listings in support of solicitations
that are open and on-the-streets. Market Surveys / Sources Sought Notices
invite interested offerors to contact the Competition Management Office and
inform them of their desire to participate in the Source Approval Program in
efforts to become an approved source.
Once
potential items are identified, how do offerors determine if the items are
worthwhile candidates? The CMO will assist the offerors in collecting the
necessary information such as procurement history, technical data, engineering
points of contacts and other data needed to make an informed decision regarding
the potential SAR candidates. All free and public information available to the
public can be obtained either through the CMO or Freedom of Information Office.
Information regarding actual solicitations or awards is the domain of the
Contracting Officer and may be available from the
In
addition to the Market Surveys / Sources Sought Notices, the CMO also manages
the Replenishment Parts
Purchased or Borrow Program (RPPOB)
that allows offerors to buy
sample parts to aid them in developing SAR Packages. More information on the
specifics of the RPPOB Program is available in Appendix B. In summation, the RPPOB Program provides
offerors an opportunity to buy parts for reverse engineering, comparison
testing or other reason related to competition enhancement. Although the offerors can buy spares through
the RPPOB Programs, they can not borrow spares under a “loan agreement” through
the RPPOB Program. The RPPOB Program does not support loaning and bailment of
secondary spares procured with Army Working Capital Funds. Besides, good Source
Approval candidates have insufficient technical data to support re-inspecting
and testing for serviceability prior to returning any stock issued under a loan
or bailment program back to on-hand inventory.
What are the Source
Approval Request Package Requirements
The most important step in the Source Approval
process is the preparation of the Source Approval Request Packages which
contain three components. First, it must
contain a description of the offeror's general manufacturing capabilities and
capacity to produce the selected part. Secondly, it must identify the exact
manufacturing processes and practices the manufacturer will employ in
manufacturing the SAR candidate. Finally, it must provide a description of the
qualification and testing procedures the manufacturer will use to demonstrate
that the item produced will meet or exceed the current form, fit and functional
requirements of the SAR candidate. The
SAR must also be detailed enough as to allow TACOM LCMC-Warren’s Engineering
Department the ability to determine if a suitable part will be produced.
All
SARs must contain the following information:
1.
Cover letter explaining the
offeror's intention of becoming an alternative source of supply for a
particular item. Identification of the offeror as a small business or corporate
affiliations with an established Contractor and Government Entity Code (CAGEC).
The letter must also identify by NSN and MPN the item of interest. If the item
of interest is on an open solicitation that is currently on the street, include
the solicitation information so that the CMO can coordinate offeror’s interest
to become an approve source with the appropriate Contracting Officer.
2.
Manufacturer brochure or a
synopsis of offeror's manufacturing operations and capabilities. Normally, any
corporate literature or brochures can be use to fulfill this requirement.
3.
Manufacturer or Supplier
Statement certifying that the offeror will perform all or most of the
manufacturing operations required to produce the SAR candidate. If an alternate
manufacturer will be use in the production process, then the submitted
statement must be for the facility and location where the actual manufacturing
and supplier processes will occur.
4.
Complete set of drawings
must be submitted for all SAR candidate(s). All drawings must include forging and casting, technical image and
supporting drawing data. If the item is a safety or mission critical part,
annotate drawings with the critical safety identifier and identify specific
characteristics that are critical (i.e. dimension, material, composition,
finish, etc.). If the drawings contain proprietary information, please mark
accordingly for proper handling.
5.
Quality System Documentation
describing the quality assurance system (e.g. MIL-Q-9858, MIL-I-45208. etc)
that will be used in manufacturing the part.
6.
Identify all special
processes and materials required in the manufacturing processes which are
difficult to control or acquire. In
addition to identifying special processes and materials, the offerors must
describe their plans for controlling special processes and materials, as well
as identification of all sub-contractors and vendors involved in the
manufacturing processes. Examples of processes that must be accounted for are
castings and forging, plating/coatings, various methods of welding, and exotic
metals such as gold, titanium and depleted uranium.
7.
A Qualification Test Plan is
probably the most important SAR component because it is a detailed explanation
of how the offeror is going to demonstrate that his version of the part will perform
as well or better than the current part. The test plan should identify all
procedures, equipments, and testing location. If the testing is to be done at
an Independent testing laboratory, the offeror should identify the proposed
vendor so that TACOM LCMC- Warren’s quality staff can evaluate the vendor's
capability. Generally, a test plan
cannot be developed without the assistance of the TACOM LCMC-Warren’s engineers
which the CMO can assist offerors in identifying the correct engineering point
of contact for all testing requirements. If military vehicles are required in support of testing, TACOM
LCMC-Warren engineers’ can also assist the offerors in making the necessary
testing arrangements.
8.
If the offeror is a
manufacturer that is currently making the SAR candidate for the vehicle
system’s Original Equipment Manufacturer (OEM) or the OEM's sub-contractors,
submitting copies of the OEM's purchase orders and shipping documents along
with the SAR Package can shorten the process. Also included in the SAR Package is information that helps to identify
the item, such as cross-references to the OEM's part number and the military
part number or National Stock Number (NSN) also speeds up the evaluation
process. At the discretion of the
engineers, qualification testing can sometimes be waived for offerors falling
into this category.
SAR FLOW
Submit all SAR Packages to the CMO at the following
address:
USA TACOM LCMC
6501 E. 11 Mile
Attn: AMSTA-CSC-M,
MS 309
Source Development
Officer
Phone: (586) 282-6596
FAX: (586) 282-5020
The
CMO will assign an internal control number and review SAR Package to ensure it
contains the required documentations; incomplete packages will be returned
without action. After assigning a control number, the CMO will identify the
responsible engineering department and transfers the SAR to the appropriate
engineer for processing. After assigning SAR Packages to an appropriate
engineer, the CMO sends the offeror a letter acknowledging receipt of the SAR
and contact information of the assigned engineer. Once, an engineer is assigned
to the SAR Package, all correspondences and communications concerning the SAR
technical requirements is between the offeror and TACOM LCMC-Warren’s engineer,
thus eliminating the CMO as an unnecessary intermediary in the process.
However, in the event of a breakdown in the process, the CMO is always
available to arrange meetings or assist the offeror as needed to get the
process back on track. The evaluation
process begins when the responsible engineer receives the SAR for final review
and approval. The engineer will review
the SAR Package drawings and compare them with available technical data as well
as review test plans for sufficiency. If the engineer has questions about the
SAR Package or detects any deficiencies, the offeror will be contacted for
clarifications. Depending on the engineer, this may be done over the phone, via
letter or face to face meetings.
If
the SAR meets the engineer’s approval, the offeror will be granted approval to
proceed with the qualification and testing phase. Although the preferred method is to have the
testing done at an independent lab and have the lab send the test results
directly to TACOM LCMC-Warren’s engineer, other arrangements are permissible
with the engineer approval. If the test
requires use of military vehicles, the engineer may refer the offeror to the
Army testing facilities at
Upon
completion of the qualification and testing phase, the engineer evaluates all
of the results. If the results fail to meet the US Government’s requirements,
the offeror will be allowed to take corrective action and retest, if he / she
so desires. There are no time
restrictions for retesting as long as the part remains in the logistics system.
If the part passes the qualification test, the engineer will notify the CMO,
who notifies the offeror that he /she has passed the qualification test and is
now considered an approved source. If
the part has a TACOM LCMC drawing and an assigned part number, the engineer
will generate an Engineering Change Proposal (ECP) to add the offeror's name,
part number and CAGEC to the drawing. Currently, due to the lack of funding required to support ECPs, the
offeror is forwarded a memorandum and a copy of the memorandum placed in the
procurement jacket validating the offeror’s ability to bid on future procurements. If there are no TACOM LCMC’s drawings, the
engineer sends a memorandum to TACOM LCMC’s Cataloging Department with
directions to add the offeror's name; part number and CAGEC to the logistics
database to establish cross-reference to the offeror’s item and the current
National Stock Number. Once these actions have been accomplished, the offeror
is allowed to bid on future procurements. If the approved parts are being
procured on an open solicitation, the ECP action or the database entry might
not be completed timely enough to support the live buy. In these cases, a memo from the engineer to
the buyer validating that the offeror is an approved source will allow the
offeror to bid. All that is left for the
offeror to do at this point is to sharpen his / her pencil and respond to the
open solicitations with their best offer. Source Approval provides no
guarantees of future contract awards; it only provides the opportunity to
compete in a market that was once available to only a few competitors. May the
best offeror prevail!
Appendix A: Sources of Information
1. Freedom of Information Act (FOIA):
FOIA Office
Attn: AMSCC-TAC-HMPB, MS 304
Warren, MI 48397-5000
(586) 282-8099 or fax (586) 282-7048
2. Technical Data Requests:
Attn: AMSTA-TR-E/PROC
3. TARDEC-NAC
6501 E. 11 Mile Road
Warren, MI 48397-5000
Attn: RDTA-NA, MS 272
(586) 282-8958 National Automotive Center/TARDEC groundvehiclegateway@conus.army.mil
4. TACOM Ombudsperson:
Attn: AMSTA-CSC-M, MS 309
(586) 282-6597 / 6547 or fax 586-282-5020
http://contracting.tacom.army.mil/ombudsperson.htm
5. Competition Management Office:
Source Development
Attn: AMSTA-CSC-M, MS
309
Warren, MI 48397-5000
(586) 282-6597 / 6547
http://contracting.tacom.army.mil/compmgt/competition.htm
APPENDIX B: The Replenishment
Parts Purchase or
The
RPPOB Program allows offerors under the Source Approval Program an opportunity
to buy the item from the US Government. The offeror may use the sample for
reverse engineering, comparison testing or any other way to assist in
developing a SAR Package. The item must be in stock and a TACOM LCMC-Warren managed
item. The RPPOB Program can only be used for developing competition; it cannot
be used to obtain samples for production purposes.
An
offerors’ wishing to obtain items should send a letter or fax to the following
address:
USA TACOM
RPPOB Program
Attn: AMSTA-CSC-M, MS 309
Phone: (586) 282-5207
FAX: (586) 282-5020
The
offeror’s letter should be on corporate letterhead and state that the item is
requested in support of developing a Source Approval Request package. It should
also list the requested part’s nomenclature and National Stock Number. All
sales under the RPPOB Program are final; TACOM LCMC-Warren will not buyback or
otherwise accept any return items under the RPPOB Program. If an offeror wishes
to simply inspect an item, sometimes arrangements can be made with the depots
or other Army facilities for the offeror to view the items. Because depot
viewing often times incurs a cost for handling and repackaging the items,
please contact the Competition Management Office RPPOB Program Manager to
establish special arrangements.
All
sales under the RPPOB Program are made under a written Sales Agreement using
the following conditions:
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